March 2016 Investor Presentation
Cautionary Statements And Risk Factors That May Affect Future Results This presentation includes forward-looking statements within the meaning of the federal securities laws. Actual results could differ materially from such forward- looking statements. The factors that could cause actual results to differ are discussed in the Appendix herein and in NextEra Energy’s and NextEra Energy Partners ’ SEC filings. Non-GAAP Financial Information This presentation refers to certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles. Reconciliations of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the Appendix herein. 2
Table of Contents • NextEra Energy, Inc. Overview (NYSE: NEE) Slide 4 • Florida Power & Light Slide 8 • NextEra Energy Resources Slide 13 • NextEra Energy Partners, LP (NYSE: NEP) Slide 19 • Financial Review Slide 26 • Appendix Slide 29 3
NextEra Energy is comprised of two strong businesses supported by a common platform • $52 B market capitalization (1) • 46 GW in operation (2) • $82 B in total assets • Strategic partnership with • One of the largest electric • The leader in North America utilities in the nation by in electricity generated from retail MWh sales the wind and sun Engineering & Construction Supply Chain Nuclear Generation Non-Nuclear Generation (1) As of February 26, 2016; Source: FactSet (2) Megawatts shown include megawatts sold to NEP as of December 31, 2015 Note: All other data as of December 31, 2015 4
Built on a foundation of best-in-class operational excellence and financial strength, and focused on clean generation Generation Profile Cost and Reliability 2015 NextEra Energy Fuel Mix MWhs (4) 2014 Utility & Corporate Benchmarks Good Industry 7.4% Nuclear Wind Good 25% 17% Industry ~$24 FL Avg ~97 Natural Gas Coal 3% FPL ~$15 FPL ~67 NextEra 0.8% 54% Solar 1% Operational Cost SAIDI Fossil Oil <1% (2) (3) $/Retail MWh (1) Minutes EFOR Credit Rating CO 2 Emissions Rate Lbs/MWh (5) 2,500 NextEra Energy, Inc. 2,000 Standard & Poor’s NextEra A- 1,500 Energy Moody’s Baa1 1,000 A- Fitch Ratings 500 Top 50 Power Producers in U.S. 0 (1) See slide 10 for detailed description of Operational Cost Effectiveness and Industry based on Adjusted Regressed (2) System Average Interruption Duration Index; Data as reported to FL PSC; FL Avg consists of data from TECO, DEF, and Gulf (3) Equivalent Forced Outage Rate; FPL Fossil and NEER F&S; Industry: NERC (Large Fossil Generating Peers) (4) As of December 31, 2015; may not add to 100% due to rounding. The environmental attributes of NEER's electric generating facilities have been or likely will be sold or transferred to third parties, who are solely entitled to the reporting rights and ownership of the environmental attributes, such as renewable energy credits, emissions reductions, offsets, allowances and the avoided emission of greenhouse gas pollutants. MJ Bradley & Associates 2015 report “Benchmarking the Largest 100 Electric Power Producers in the U.S.” (5) 5
We have a long-term track record of delivering value to shareholders Total Shareholder Return (2) Adjusted Earnings Per Share (1) $3.49 $3.84 $4.05 $4.30 $4.39 $4.57 $4.97 $5.30 $5.71 65% 1.4% 2% 70% 0.7% 1% 60% 53% 0% 50% 39% (1%) $2.63 $3.04 40% (2%) 30% (3%) 20% (4%) 10% (5%) (4.8%) (6%) 0% One Year Three Year '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Dividends Per Share 160% 300% 137% 250% 140% 250% $2.90 $3.08 120% $1.42 $1.50 $1.64 $1.78 $1.89 $2.00 $2.20 $2.40 $2.64 200% 100% 81% 69% 150% 80% 104% 102% 60% 100% 40% 50% 20% 0% 0% Five Year Ten Year ■ NEE '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 ■ S&P 500 Utility Index (1) See Appendix for reconciliation of adjusted amounts to GAAP amounts ■ S&P 500 (2) Source: FactSet; includes dividend reinvestment as of 12/31/2015 6
Over a sustained period of time, our growth strategy has led to real change in relative position Top 20 Global Utility Equity Market Capitalization (1) As of 6/1/2001 ($ MM) As of 2/26/2016 ($ MM) Rank Rank Market Cap Market Cap 1 $38,574 1 $51,827 NextEra Energy 2 $38,185 2 $50,957 3 $34,476 3 $50,372 4 $34,111 4 $43,949 5 $30,955 5 $41,685 6 $23,906 6 $41,429 7 $21,537 7 $38,064 8 $20,093 8 $37,852 9 $17,297 9 $31,422 10 $16,873 10 $30,185 11 $16,279 11 $29,683 12 $15,884 12 $29,189 13 $15,785 13 $27,810 14 $14,601 14 $23,719 15 $14,461 15 $23,464 16 $14,223 16 $22,250 17 $13,773 17 $21,914 18 $13,550 18 $21,529 19 $13,136 19 $20,735 20 $12,934 20 $20,654 30 $10,206 NextEra Energy 7 (1) Source: Factset
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FPL is one of the best utility franchises in the U.S. Florida Power & Light Core Strategy Service Territory Superior Customer Value Delivery Strong Customer Virtuous Circle Financial Satisfaction Position Constructive Regulatory Environment • • Low Cost 4.8 MM customer accounts • • High Reliability 25 GW in operation • • Customer Satisfaction $43 B in total assets Data as of December 31, 2015 9
Our value delivery is founded on a low cost position and best- in-class operations Operational Cost Effectiveness (1) $100.00 Good Adjusted Regressed Top Decile $/Retail MWh FPL ~$15 Log/Log $10.00 1,000,000 10,000,000 100,000,000 1,000,000,000 Retail MWh (1) FERC Form 1, 2014. Excludes pensions and other employee benefits. Note: Holding companies with >100,000 customers. Excludes companies with no utility owned generation. 10
FPL’s strategy continues to result in typical residential bills below both Florida and national averages FPL Customer Bill (1) ~$137 ~$122 ~$108 ~$92 (2) (3) (4) (5) FPL FPL Florida National 2006 2016 Average Average (1) Rates based on a typical 1,000 kWh residential bill (2) FPL annual average (3) FPL filing with the FPSC to reduce rates effective April 1, 2016 (4) FMEA 2015 average of Florida investor-owned utilities 11 (5) EEI National Average as of January 2015 and July 2015
FPL will file in 2016 for rate relief beginning in 2017 Estimated FPL Rate Case Timeline Late Q2 March Q4 Q2 Early Q3 Q3 2016 2016 Intervenor, File formal Quality of Final Rate staff, and FPL rate request service decision by hearings rebuttal (testimony; hearings PSC testimony detailed data expected schedules) 12
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Energy Resources is a diversified clean energy company whose skills and assets are well aligned to drive growth Energy Resources Skills and Capabilities Generation Portfolio (1) • Largest, most successful developer of renewables in North America – Consistent strategy to build, own and operate environmentally favorable assets • Excellent operator of diverse fuel assets – wind, solar, fossil and nuclear Wind • Investments in related areas – gas 59% pipelines, transmission, energy Natural storage Gas 19% • Oil Hedging, optimization and risk Nuclear Solar 4% 13% management 5% (1) Generation mix is based on capacity MW as of December 31, 2015 14
Energy Resources’ renewables program is well positioned for continued success Energy Resources Development Program (1) • We have exceeded the expectations we discussed in March 2015 for our 2015-2016 renewables development program: March 2015 Investor Conference (2) Current Additional Signed & COD 2015-2016 Signed Potential Total 1,100 – 1,300 2,080 – 2,280 U.S. Wind 980 2,397 – Canadian Wind 174 174 174 150 – 250 1,110 – 1,210 U.S. Solar 960 1,385 1,250 – 1,550 MW 3,364 – 3,664 MW Total 2,114 MW 3,956 MW • In addition, we have signed U.S. solar contracts for ~236 MW for post-2016 delivery • Expect to update expectations for 2017-2018 development program during our Q1 2016 earnings call (1) As of Q4 2015 earnings call on January 28, 2016; megawatts shown include megawatts sold to NEP (2) As of March 11, 2015 15
U.S. Federal tax incentives for completed renewables projects have been extended through the end of the decade Extended U.S Federal Tax Credits Wind Production Solar Investment Tax Credit (PTC) Tax Credit (ITC) Start of Potential Start of Potential Construction COD Wind Construction COD Solar Deadline (1) Deadline (1) Date PTC Date ITC Prior to 1/1/2017 12/31/2018 100% Prior to 1/1/2020 12/31/2021 30% Prior to 1/1/2018 12/31/2019 80% Prior to 1/1/2021 12/31/2022 26% Prior to 1/1/2019 12/31/2020 60% Prior to 1/1/2022 12/31/2023 22% Prior to 1/1/2020 12/31/2021 40% 2022 and beyond N/A 10% (1) Contingent upon IRS start of construction guidance 16
Renewable energy development opportunities have never been stronger Drivers for New Renewables • Certainty of U.S. Federal Tax incentives for renewables • Wind technology and efficiency improvements • Solar installation costs and improvements • Potential demand from carbon emissions regulation • Potential coal-to-gas and coal-to-renewables switching driven by low natural gas prices Energy storage may provide additional opportunities in the next decade 17
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